IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v209y2026ics0965856426001552.html

High-speed rail and employment disparity: A sectoral perspective

Author

Listed:
  • Zheng, Longfei
  • Wu, Shuping
  • Zhang, Anming
  • Zhou, Zhengyi

Abstract

By reducing intercity transport costs, transportation infrastructure can reshape the spatial distribution of urban sectoral employment and affect regional disparity. This paper develops a theoretical model to illustrate the effects of high-speed rail (HSR) on employment disparity between core and peripheral cities, highlighting differences between the manufacturing and service sectors. The model’s predictions are supported by city-pair-level evidence. We empirically show that HSR connections significantly widen employment gaps between core and peripheral cities in the service sector, while slightly narrowing the gap in the manufacturing sector. Moreover, the effects on the service sector mainly stem from employment growth, whereas those on the manufacturing sector result from a redistribution of existing employment. The net effect on labor welfare depends on the relative strength of different forces.

Suggested Citation

  • Zheng, Longfei & Wu, Shuping & Zhang, Anming & Zhou, Zhengyi, 2026. "High-speed rail and employment disparity: A sectoral perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:transa:v:209:y:2026:i:c:s0965856426001552
    DOI: 10.1016/j.tra.2026.105014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856426001552
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2026.105014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Vickerman, Roger, 2018. "Can high-speed rail have a transformative effect on the economy?," Transport Policy, Elsevier, vol. 62(C), pages 31-37.
    3. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
    4. Wu, Mingqin & Yu, Linhui & Zhang, Junsen, 2023. "Road expansion, allocative efficiency, and pro-competitive effect of transport infrastructure: Evidence from China," Journal of Development Economics, Elsevier, vol. 162(C).
    5. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    6. Bajzik, Josef & Havranek, Tomas & Irsova, Zuzana & Schwarz, Jiri, 2020. "Estimating the Armington elasticity: The importance of study design and publication bias," Journal of International Economics, Elsevier, vol. 127(C).
    7. Yoo, Sunbin & Kumagai, Junya & Zhang, Bingqi & Zheng, Longfei, 2026. "High-speed rail, land-use transformation, and natural capital depletion: A comparative analysis of China and Japan," Land Use Policy, Elsevier, vol. 165(C).
    8. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    9. Kuang, Chun & Liu, Zijie & Zhu, Wenyu, 2021. "Need for speed: High-speed rail and firm performance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    10. Gabriel M Ahlfeldt & Arne Feddersen, 2018. "From periphery to core: measuring agglomeration effects using high-speed rail," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 355-390.
    11. Di Matteo, Dante & Cardinale, Bernardo, 2023. "Impact of high-speed rail on income inequalities in Italy," Journal of Transport Geography, Elsevier, vol. 111(C).
    12. Zhou, Zhengyi & Zhang, Anming, 2026. "Does high-speed rail stimulate innovation: City- and firm-level evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 205(C).
    13. Chang, Zheng & Zheng, Longfei, 2022. "High-speed rail and the spatial pattern of new firm births: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 373-386.
    14. Chen, Zhenhua & Haynes, Kingsley E., 2017. "Impact of high-speed rail on regional economic disparity in China," Journal of Transport Geography, Elsevier, vol. 65(C), pages 80-91.
    15. Ma, Lin & Tang, Yang, 2024. "The distributional impacts of transportation networks in China," Journal of International Economics, Elsevier, vol. 148(C).
    16. Liu, Shuli & Wan, Yulai & Zhang, Anming, 2020. "Does China’s high-speed rail development lead to regional disparities? A network perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 299-321.
    17. Zheng, Longfei & Xue, Yutong & Huang, Daquan, 2025. "Inter-city transport hubs and intra-city polycentric structure: Evidence from high-speed rail stations and airports in China," Journal of Transport Geography, Elsevier, vol. 123(C).
    18. Zheng, Longfei & Wu, Shuping, 2024. "Remote high-speed rail stations, urban land supply, and the emergence of new economic activities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 189(C).
    19. Zhang, Xuezhi & Wu, Wenxin & Zhou, Zixun & Yuan, Lin, 2020. "Geographic proximity, information flows and corporate innovation: Evidence from the high-speed rail construction in China," Pacific-Basin Finance Journal, Elsevier, vol. 61(C).
    20. Feng, Qiyun & Chen, Zhenhua & Cheng, Chuanchao & Chang, Haiqing, 2023. "Impact of high-speed rail on high-skilled labor mobility in China," Transport Policy, Elsevier, vol. 133(C), pages 64-74.
    21. Andrew B. Bernard & Andreas Moxnes & Yukiko U. Saito, 2019. "Production Networks, Geography, and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 639-688.
    22. Chang, Zheng & Peng, Zhiyu & Diao, Mi & Zheng, Longfei, 2025. "How does high-speed rail reshape the spatial distribution of service activities? Evidence from the firm data in China," Transport Policy, Elsevier, vol. 167(C), pages 16-27.
    23. Zheng, Longfei & Chang, Zheng & Martinez, Andrea González, 2022. "High-speed rail, market access, and the rise of consumer cities: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 454-470.
    24. Longfei Zheng & Huasheng Zhu & Kwok Yuen Fan & Zheng Chang, 2024. "Why high-speed rail causes heterogeneous spatial patterns in firm innovation: Perspectives from intensive and extensive margins," PLOS ONE, Public Library of Science, vol. 19(10), pages 1-19, October.
    25. Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2020. "On the road: Access to transportation infrastructure and economic growth in China," Journal of Development Economics, Elsevier, vol. 145(C).
    26. Fang, Min & Huang, Zibin, 2022. "Migration, housing constraints, and inequality: A quantitative analysis of China," Labour Economics, Elsevier, vol. 78(C).
    27. Zhang, Yuxin & Xu, Dafeng, 2023. "Service on the rise, agriculture and manufacturing in decline: The labor market effects of high-speed rail services in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 171(C).
    28. Tyndall, Justin, 2021. "The local labour market effects of light rail transit," Journal of Urban Economics, Elsevier, vol. 124(C).
    29. Junxue Jia & Jia Gu & Guangrong Ma, 2021. "Real Estate Boom and Firm Productivity: Evidence from China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(5), pages 1218-1242, October.
    30. Zhou, Zhengyi & Zhang, Anming, 2021. "High-speed rail and industrial developments: Evidence from house prices and city-level GDP in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 98-113.
    31. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    32. Benjamin Faber, 2014. "Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1046-1070.
    33. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    34. Lin, Yatang, 2017. "Travel costs and urban specialization patterns: Evidence from China’s high speed railway system," Journal of Urban Economics, Elsevier, vol. 98(C), pages 98-123.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang, Zheng & Peng, Zhiyu & Diao, Mi & Zheng, Longfei, 2025. "How does high-speed rail reshape the spatial distribution of service activities? Evidence from the firm data in China," Transport Policy, Elsevier, vol. 167(C), pages 16-27.
    2. Zhu, Junjie & Guo, Hongfeng, 2025. "Does the development of high-speed rail benefit carbon emissions reduction?," Transport Policy, Elsevier, vol. 172(C).
    3. Yoo, Sunbin & Kumagai, Junya & Zhang, Bingqi & Zheng, Longfei, 2026. "High-speed rail, land-use transformation, and natural capital depletion: A comparative analysis of China and Japan," Land Use Policy, Elsevier, vol. 165(C).
    4. Jiao, Jingjuan & Zhao, Hongyu & Lyu, Guowei, 2024. "How does high-speed rail affect off-site investments? Evidence from the Yangtze River Delta, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    5. Jiao, Jingjuan & Zhang, Qilin & Jiang, Runze & Lyu, Guowei, 2025. "Does high-speed rail contribute to cross-boundary agglomeration of migrant workers? Evidence from China," Journal of Transport Geography, Elsevier, vol. 125(C).
    6. Zheng, Longfei & Wu, Shuping, 2024. "Remote high-speed rail stations, urban land supply, and the emergence of new economic activities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 189(C).
    7. Liu, Mengsha & Jiang, Yan & Wei, Xiaokun & Ruan, Qingsong & Lv, Dayong, 2023. "Effect of high-speed rail on entrepreneurial activities: Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    8. Rojas, Alexandra & Palmqvist, Carl-William & Camporeale, Rosalia, 2026. "The socioeconomic impact of train stations: evidence from a 20-year study in Sweden," Transportation Research Part A: Policy and Practice, Elsevier, vol. 204(C).
    9. Lan, Xiujuan & Hu, Zheneng & Wen, Chuanhao, 2023. "Does the opening of high-speed rail enhance urban entrepreneurial activity? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    10. Wang, Tianyu & Li, Lei & Lu, You, 2026. "Transportation infrastructure and college admissions quality: Evidence from China's National College Entrance Examination," Regional Science and Urban Economics, Elsevier, vol. 119(C).
    11. Pi, Yabin & Wang, Yanzhen, 2025. "Transportation infrastructure, comparative advantage, and regional specialization: Evidence from China’s high-speed railway network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 191(C).
    12. Okamoto, Chigusa & Sato, Yasuhiro, 2021. "Impacts of high-speed rail construction on land prices in urban agglomerations: Evidence from Kyushu in Japan," Journal of Asian Economics, Elsevier, vol. 76(C).
    13. Yoo, Sunbin & Kumagai, Junya & Lin, Hung-Jui & Nakaishi, Tomoaki & Hsieh, I-Yun Lisa, 2026. "Sector-specific decarbonization effects of high-speed rails expansions," Energy Economics, Elsevier, vol. 158(C).
    14. Wang, Chunyang & Zhang, Meng & Chen, Zhenhua & Zhang, Chao, 2024. "Impact of high-speed rail on wage premiums for migrant workers in China," Transport Policy, Elsevier, vol. 157(C), pages 57-73.
    15. Tan, Ruipeng & Pan, Lulu, 2024. "How high-speed railway expands beyond local knowledge search in interdisciplinary innovation: Evidence from China," Transport Policy, Elsevier, vol. 159(C), pages 143-156.
    16. Baek, Jisun & Park, WooRam, 2022. "The impact of improved passenger transport system on manufacturing plant productivity," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    17. Yahong Liu & Daisheng Tang & Tao Bu & Xinyuan Wang, 2022. "The spatial employment effect of high-speed railway: quasi-natural experimental evidence from China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 333-359, October.
    18. Hiau Looi Kee & Enze Xie & Xu,Mingzhi, 2024. "Firm Linkages and Domestic Value Added in Exports : Moving up the Global Value Chains with High-Speed Railways," Policy Research Working Paper Series 10985, The World Bank.
    19. Hao, Jingjun & Dong, Peiting & Yao, Xin, 2025. "High-speed railway opening, firm agglomeration and carbon emission: Evidence from China," Energy Economics, Elsevier, vol. 148(C).
    20. Liu, Jingyang & Yang, Haoran, 2023. "Income allocation and distribution along with high-speed rail development in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:209:y:2026:i:c:s0965856426001552. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.